Study: Economy Performs Better Under Democrats
A new Princeton study has found that the economy has performed better and grew faster under Democratic presidents than Republican presidents since World War II. According to the study, although there aren’t clear explanations as to why, the U.S. economy has grown by an average of 2 percent faster when a Democrat occupies the White House.
Combined, the Gross Domestic Product (GDP) grew by an average of 4.35 percent per year under Democrats, compared with 2.54 percent per year under Republicans.
Under Democratic President Harry Truman, the GDP grew by an average of 5 percent over his two terms in office and by 6.5 percent per year over his second term as the country recovered from a Depression and World War II.
When Republican President Dwight Eisenhower took over, however, the economy slowed and grew by just 2.5 percent per year over his two terms. Under Democrats John F. Kennedy and Lyndon B. Johnson, the economy came back in a strong way, growing more than 5 percent per year.
Once Richard Nixon came into office, the same phenomenon happened. Under Nixon and his second-term replacement Gerald Ford, the economy grew by about 2.75 percent per year. Jimmy Carter, who is often accused of being a “bad president”, saw the economy grow by 3.5 percent each year he was in office.
Under Ronald Reagan, the economy grew by 3.5 percent per year as well but just 2 percent under George H.W. Bush. The economy soared under Bill Clinton, growing nearly 4 percent per year. Under George Bush, however, the economy grew just 1.5 percent per year and less than 1 percent per year in his second term. During Obama’s first term, the economy grew at about 2 percent per year as the country recovered from a recession.
The study cited oil price spikes under George W. Bush and Richard Nixon as a small reason for the gap. The bigger reason seems to be that Democratic presidents improve consumer confidence after years of slow growth under Republicans.